Fritz v. Commissioner
United States Board of Tax Appeals
1. Profits realized from the sale of oil and gas leases should not be included in the basis for computing depletion under section 204(c)(2) of the Revenue Act of 1926. Macon Oil & Gas Co.,23 B.T.A. 54, followed. 2. Where, after selling the bulk of its property for cash, a partnership composed of four individuals, with 1/24 interest held by trustees for undisclosed beneficiaries, transferred the remainder of its property, having a depreciated cost basis of $180,006.37, to a…
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1. Profits realized from the sale of oil and gas leases should not be included in the basis for computing depletion under section 204(c)(2) of the Revenue Act of 1926. Macon Oil & Gas Co.,23 B.T.A. 54, followed. 2. Where, after selling the bulk of its property for cash, a partnership composed of four individuals, with 1/24 interest held by trustees for undisclosed beneficiaries, transferred the remainder of its property, having a depreciated cost basis of $180,006.37, to a new partnership composed of the same four individuals with readjusted interests, but not including the trustees, for a…
1Opinion of the Court
*410OPINION.
Lansdon:
In the taxable year the partnership, Staley & Wynne, sold certain oil and gas leases, as set out in our findings of fact, and realized net profit in the amount of $438,394.71. Petitioners contend that such profit was income from the property in the taxable year and should be included in the basis for computing depletion as provided in section 204 (c) (2) of the Revenue Act of 1926.
The issue here raised was decided adversely to the contention of the petitioners in Darby-Lynde Co. v. Alexander, 44 Fed. (2d) 186; affirmed by the Circuit Court of Appeals for the Tenth Circuit, 51…
2Cases cited6 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Wilson v. CommissionerUnited States Board of Tax Appeals · 1929
- Cameron v. CommissionerUnited States Board of Tax Appeals · 1927
- Cameron v. CommissionerUnited States Board of Tax Appeals · 1930
- Macon Oil & Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1931
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Fritz v. CommissionerUnited States Board of Tax Appeals · 1933